|FOR IMMEDIATE RELEASE |
TUESDAY, OCTOBER 9, 2012
CONTACT: LOLA POTTER
NASHVILLE – Sales tax collections in Tennessee continued to show marginal growth in September revenue figures. Finance and Administration Commissioner Mark Emkes reported today that overall September revenues were $1.1 billion, which is 5.45% above the budgeted estimate. September sales tax collections reflect spending that occurred in August.
“The sales tax is the ‘bread and butter’ of our revenue collections in Tennessee, and it’s our leading economic indicator,” Emkes said. “September sales tax collections continue to reflect the sluggish national economy, but we are very pleased with the positive growth rates reported in corporate franchise and excise taxes.
“Leading economic indicators on the national level continue to reflect mixed results, which calls for continued scrutiny of expenditures for the balance of this fiscal year, so we can keep the budget in balance and conservatively manage the state’s spending.”
On an accrual basis, September is the second month in the 2012-2013 fiscal year.
September collections were $55.8 million more than the budgeted estimate. The general fund was over collected by $57.7 million and the four other funds were under collected by $1.9 million.
Sales tax collections were $2.2 million less than the estimate for September. The September growth rate was 2.84%.
Franchise and excise taxes combined were $54.9 million above the September budgeted estimate of $254.2 million. The September growth rate was positive 22.31%.
Gasoline and motor fuel collections for September decreased by 2.12% and were $3.0 million below the budgeted estimate of $71.5 million.
Tobacco tax collections for the month were under collected by $2.9 million, and the growth rate was negative 7.51%.
Privilege tax collections were $5.3 million more than the budgeted estimate of $15.4 million.
Inheritance and estate tax collections were $0.1 million above the budgeted estimate.
All other taxes were over collected by a net of $3.6 million.
Year-to date collections for two months were $41.9 million more than the budgeted estimate. The general fund was over collected by $51.4 million and the four other funds were under collected by $9.5 million.
The budgeted revenue estimates for 2012-2013 are based on the State Funding Board’s consensus recommendation of December 19th, 2011 and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.shtml.